Understanding Implicit Costs: Concepts, Types, and Examples
In short, an amount earned or spent for any required resource, which is internally available, is implicit. Those other purposes might include renting assets to another party and the rent they would have earned as the opportunity cost. Implicit costs are opportunity costs and are not usually recorded for accounting purposes. What are examples of Implicit Costs? An example of an out-of-pocket cost is a building used for business operations instead of generating rental profit. Implicit costs can incl
